Renters Insurance vs. Homeowners Insurance (2024)

FAQs

Renters Insurance vs. Homeowners Insurance? ›

Key Takeaways. Homeowners insurance covers the building you live in and associated structures such as garages. Most lenders will require you to take out homeowners insurance when taking out a mortgage. Renters insurance is for tenants to cover liability and their personal property.

The main and most obvious distinction between renters insurance and homeowners insurance is that a homeowners policy safeguards the home's physical structure against covered perils while renters insurance won't protect the home or building occupied by the tenant.

What is the difference between homeowner's insurance and renter's insurance? Homeowner's insurance covers the residence. Renter's insurance only covers the belongings in a residence.

Renters insurance protects your belongings from loss, damage, or destruction following things like burglaries, fires, tornadoes and other covered events. Plus, renters insurance also protects your liability (and your money) if someone is injured at your rental home or apartment.

Renters insurance has three basic coverage components: personal possessions, liability, and additional living expenses.

Expert-Verified Answer

The primary difference between renters insurance and homeowners insurance is that homeowners insurance covers damage to the home itself in addition to personal belongings, while renters insurance primarily covers the personal belongings, not the building.

On homeowners, renters, or condo policies, your property and belongings may be insured for either your property's actual cash value (ACV) or replacement cost value (RCV). Replacement cost value is the amount it will take to replace your property or belongings without any deduction for depreciation.

To protect yourself and your belongings, renters should consider purchasing renters insurance, also known as "tenants insurance."

Homeowners' insurance is a specific type of property insurance. Homeowners' insurance covers damage or loss by theft and against perils which can include fire, and storm damage. It also may insure the owner for accidental injury or death for which the owner may be legally responsible.

What are 2 reasons people typically do not get renters insurance? ›

Renters insurance can help you repair or replace property after loss due to many types of damage or theft. It can also provide coverage for an accident at your residence. Policies usually have very affordable annual premiums.

Admitting Fault, Even Partial Fault.

Avoid any language that could be construed as apologetic or blameful.

Homeowners insurance covers the building you live in and associated structures such as garages. Most lenders will require you to take out homeowners insurance when taking out a mortgage. Renters insurance is for tenants to cover liability and their personal property.

Flooding, earthquakes and sinkholes are all examples of natural disasters that are not covered by a typical renters insurance policy. All three of these events can easily damage your personal property, so you should buy additional coverage if you think you're at risk.

Liability coverage for renters

Liability coverage is another protection typically included in a renters insurance policy. This coverage may help protect you from paying out of pocket for certain costs if you are found legally responsible for injuries to other people or damage to their property.

Does homeowners insurance cover theft from a home? Typical homeowners (including renters and condominium) policies include coverage for your personal property. Loss due to theft is generally included as part of the personal property protection.

The most important aspects to consider in homeowners or renters insurance are personal property coverage, liability protection, structural coverage (for homeowners), additional living expenses, deductibles, policy limits and exclusions, potential discounts and bundling, and the reputation and service of the insurance ...